Why You Are Not Able To Save And How To Save Money

If there’s, one thing that everyone says they will do with their money but almost never follow through on, it’s saving money. 

Recent studies show that 39 percent of American households have less than $ 1,000 saved, and if you’re living in the 21st century, like I am, then you know that $ 1000 doesn’t buy you much these days.

So what’s, causing most people to fail in their personal savings efforts? Well blog, I will share with you why saving money is so hard and five strategies you can use to save more money.

Let’s, face it, most people aren’t good at saving. You may have heard the over-quoted statistic that almost half of the United States, wouldn’t, be able to handle an unexpected $500 expense and would have to go into debt to pay it.

Another 21 percent reported that they deal with three months of unemployment by borrowing from friends selling assets or taking out payday loans. 

These are simply a few examples of just how dire many people’s financial situations, and, quite frankly, I empathize with them.

Saving money can be hard and your efforts can be affected by numerous factors like your income, number of dependents, priorities in life, and many other things. 

So let’s, go over a few reasons why saving money can be extremely challenging, and then I will walk you through five ways you can save more money and see your wealth grow over time. 

Why Saving Money Can Be Extremely Challenging

1. We are constantly fighting the temptation to spend

The first reason it’s hard to save is that we are constantly fighting the temptation to spend. 

The consumer culture We live in today bombards us with ads for new clothes, electronics, and cars we feel we must own if we want to keep up with our peers. 

While some people can fend off these aggressive tactics. Others lack the willpower to do so, and this can cause them to spend money that otherwise will be saved.

2. The need for relief 

The next reason people find it hard to save is that they need relief from their 9 to 5 grind and one of the only ways they know how to make themselves feel better is by turning to retail therapy. 

The sad reality is that most people aren’t in love with their jobs. That is why this blog exists to expose other avenues you can use your talents whilst creating wealth.

A 2016 Gallup poll showed that 71 % of workers aren’t engaged at work, and at least 60% are open to new job opportunities. 

With these statistics in mind, it’s no wonder people need to relieve the stress and disappointment they get from their daily work routine… and while some people may start out treating themselves with a small purchase after a long work week, things can spiral out of control pretty easily.

This is what we refer to as “the what the hell effect” where you start to spend money and, as you realize you’ve blown your initial budget.

You then go wild and continue to spend, telling yourself that you’ll be more responsible next month.

Finally, if you do start to make efforts to save money every month, they can seem futile, especially in the beginning. 

For instance, if you are making a low salary and are barely able to cover your bills, that $50 you save a month won’t seem like it’s helping you grow your wealth by any means. 

That $50 represents one dinner out or one tank of gas in your car and while these small increment savings won’t make you rich overnight, they do allow you to start building a habit of saving, which is a step in the right direction. 

Ultimately, saving can be tough, which is why I will now share five ways you can set yourself up to save more money and feel good about your financial position. 

Five Ways You Can Set Yourself Up To Save More Money

1. Focus on the process, not the outcome

When you are just starting out on your own money-saving journey an expectation to make big financial leaps and wealth is simply unrealistic. 

In the beginning, your main focus should be on crafting the habit of budgeting and ensuring that the money target you aimed at is met at the end of every single month.

Now, where people go wrong when trying to save more money is focusing on the outcome instead of the process.

They picture all the fun they will have traveling the world with the money they’ve saved up or returns from an investment or how nice it will be when they can afford a new car.

They can actually deter your ability to save. You see the magnitude of your financial goals can either add or detract from your success.

say you are putting $300 aside every month to buy a new car that costs thirty thousand dollars. (By the way, I will not recommend buying a new car)…

After six months, you would have eighteen hundred dollars in your car savings account, and while you are proud of your progress. You sigh at the thought of how many more years it will take to be able to afford that new car you’ve, been wanting to buy. 

So instead you decide to blow that eighteen hundred dollar on a new TV justifying that you will never save up the thirty thousand dollars you need anyway.

Now there is nothing wrong with having large financial goals, but without the money saving habit and motivation in place, your efforts can be squandered by their magnitude. 

This is why I recommend that you focus on the process, on simply doing the things that need to be done, and reward yourself in small ways to keep your motivation going.

2. Keep your savings out of sight 

When it comes to money sometimes you need to get creative in the methods you use to build your wealth, and one of the tricks I have used to save more money over the years is by keeping my money out of sight.

Where people go wrong when trying to save more money is by keeping all the cash in one single place. If all your sources of income are in a single account, then you will constantly have access to that money, making it much much easier to spend don’t you agree?.

Most had to learn this lesson the hard way.

What I suggest for those with less financial willpower, is to set up an “untouchable account”, which is an account that you open and hand over the banking information and access card to a trusted family, member, or friend or better still invest the money.

So your money works for you and not lying dormant in an account. (At current interest averaging 1% there is not a lot to be gained.)

This way you will have no access to the account or money, meaning that, even if you wanted to spend the money there will be no way to do so. 

PS: No matter how small the amount is, you can still invest it.

3. Start a spending freeze.

If you are truly committed to prioritizing saving money, then one technique that you can use to maximize your efforts is to implement a spending freeze. 

Sadly, in the United States, 78% of individuals are living paycheck to paycheck.

To be blunt, a good portion of these people have put themselves in this situation by overspending on frivolous items.

While they would have had money left over to save at the end of every month, based on their income level, their desire to keep up with the Joneses and that desire for shopping is often too much to resist.

Sure you may feel great during the moment and a few hours after an exciting purchase, but in my experience, this feeling is fleeting putting you back to where you started at, emotionally just poorer.

This is where a spending freeze comes in handy. A spending freeze is a period of time during which you stop spending money. 

Now, while it is impossible to spend absolutely no money due to housing bills and groceries during this period of abstinence, you should be cutting out all unnecessary purchases. This means no expensive lattes and no new clothes. 

The goal of implementing a spending freeze is to keep your financial outlays to an absolute minimum. 

Implementing a spending freeze comes with two main benefits.

First, you will save money, given that your spending is decreased. Well, this is a positive of implementing this approach. 

I think that the ultimate benefit relates to the spending high when you cut out frivolous spending.

You realize over time that you are no less unhappy, than, when you were spending to improve your mood. 

This is a great technique to learn the difference between your wants and needs and will certainly have you saving more money as you streamline your monthly expenses.

4.  Bank your windfalls.

Saving money is as much of a mental game as it is a financial one and nothing gets you more motivated to grow your wealth than seeing your bank account balance skyrocket.

We need to recognize that most people’s savings progress will come in the form of small but still valuable savings increments.

Whether it’s allocating a fifty dollar paycheck to you’re untouchable fund or cutting out your morning Starbucks latte, it’s going to take a little while to build up some serious cash.

However, there are certain times in life where we are the recipients of larger-than-normal influxes of money, and these events give us the opportunity to make noticeable progress in our savings efforts.

These windfalls could come in the form of a bonus, a large tax refund or even inheritance, and these events offer us an opportunity to increase our wealth, meaning that you must make financially responsible decisions when you find yourself in this situation.

Now, if you’re like the majority of people who are swept up in the consumer-centric culture then of course any windfall you receive will be earmarked for spending and that’s one option…

But by putting that money or most of it anyways into savings, you’re getting closer to that moment, when you’ve saved up enough that you feel invested when you no longer look at your balances as some piddly thing… but rather as something to be protected and cultivated once you hit that place, then saving becomes a lot easier.

It stops being drudgery and starts being something you want to do you experience for maybe the first time what financial security feels like, and it feels good. So you will want to get more of it.

5. Earn more income

Go on the offensive and earn more money.

Of course, it goes without saying that you must save this extra cash by making those extra deposits and your saving momentum and motivation will skyrocket, along with your bank balance.

Therefore, if you want to put your savings efforts on steroids, then you must start to earn more money.

 If you want to go from the life you have to the life you deserve then subscribe to our newsletter.